On August 6, Coinbase Head of Legal Paul Grewal made behind-closed-door discussions with Karnataka IT Minister Priyank Kharge public. The discussions were a dramatic departure from the exchange’s India strategy — retail crypto to institutional and civic blockchain adoption.
Rather than focusing on token listings or trading platforms, the agenda included education for blockchain developers, cybersecurity collaboration, and possibly state-sponsored hackathons. The approach of Coinbase appears determined to meet India’s digital public infrastructure goals.
From Crypto Trading to Civic Tech
Minister Priyank Kharge emphasized that the conversations were not about crypto assets but blockchain as a public good. He argued that the developer tools of Coinbase could simplify onchain application deployment in domains such as governance, finance, and data openness.
This is an echo of the experience of Karnataka with blockchain testing. In 2017, Kharge chaired conversations on blockchain for governance, making pioneering efforts towards the current institutional interest.
Coinbase’s newfound interest in the face of past tension with Indian regulators — most recently its 2022 UPI integration failure and 2023 withdrawal from retail business — the company is instead positioning itself not as a trading center, but an infrastructure partner.
Regulatory End-Run?
The move by Coinbase is a reflection of its global rebranding as a blockchain policy shaper and infrastructure enabler. Grewal’s new role at the US-India Business Council cemented those ties, creating a commercial and diplomatic bridge between the firm and Indian policymakers.
By inserting itself into India’s civic tech space, starting with Karnataka, Coinbase would be able to establish a template that other states would be forced to emulate. That would minimize regulatory resistance while giving the exchange a backdoor entrance into India’s fast-evolving Web3 infrastructure.
What’s Next?
While there’s no sign yet of Coinbase’s return to India’s retail crypto sector, its institutional pivot is clear. If Karnataka adopts its proposals, the state will serve as Coinbase’s beachhead in one of the world’s most restrictive but potentially revolutionary crypto markets.
As India is crafting its digital public stack and blockchain policy, this quiet partnership could have sweeping implications throughout the nation — and establishing Karnataka as Coinbase’s strategic bet in its extended game.
